Market is strong right now…..but what’s the outlook?
Strong auction clearance rates continue
For the October 15 – 16 weekend auction clearance rates were again high. Based on combined capital city data the preliminary national auction clearance rate was 78%. In total there were 2,405 auctions on the weekend.
How did my city go?
Based on the preliminary data, here is how the nation’s 5 largest capital cities performed:
Source: CoreLogic RP Data
Key things to note about this weeks results in include:
- Sydney continues to lead the way, recording it’s 26th consecutive week of an auction clearance rate of above 70%
- Melbourne continues to have significantly more auctions being held than in Sydney
- Canberra had another strong weekend (84%) on the back of their highest auction clearance rate of the year last week
Please note, all figures are preliminary and are subject to change as more results come in during the week.
Labor wins ACT election
Buying activity is strong in Canberra right now
Despite an election in the ACT on the weekend buying activity remains quite strong in the national’s capital (with auction clearances rates currently sitting above 80%). The Labor party won another 4 years in Government on Saturday.
QBE Australian Housing Outlook
Most capital cities are expected to slow over the next three according to the QBE Housing Outlook
According to the QBE Housing Outlook Report (October 2016) property prices will start to flatten and even fall in many capital cities that have recently experienced strong gains, with the report saying this will help ease housing affordability. The report provided forecasts in median property prices over the next 3 financial years (to the year ending 30 June 2019). Here are some of the interesting predictions made by the report:
- Sydney & Melbourne: House prices are forecasted to be very flat, but unit prices are forecasted to fall
- Brisbane & Canberra: House prices are forecasted to rise, while unit prices are forecasted to fall
- Adelaide: Both house & unit prices are expected to be flat.
- Darwin & Perth: Both house & unit prices are forecasted to fall.
- Hobart: Both house & unit prices are forecasted to increase.
According to the report Hobart is expected to the be the nation’s top performing capital city in terms of capital growth in median property prices over the next three years. Meanwhile the report anticipates that Darwin property prices will decline the most over the next 3 years.
When buying your first home you should consider a range of forecasts, your personal circumstances, objectives and how long you plan to own the property for (amongst a range of other factors).
Learn more about the report and forecasts in your area in the QBE Housing Outlook Report.
First Home Buyers Australia